To show whether the financial statements are complete, reasonable, and prepared in a manner consistent with generally accepted accounting principles (GAAP) at a set time. What is the name of rules and regulations used to prepare financial statements? Generally accepted accounting principles (GAAP) Name two other primary financial information sources. SEC Form 10-K & unaudited SEC Form 10-Q What type of information is provided in the statement of earnings? A financial statement that reports the results of a company’s business operations for a set period. What type of information is provided in the statement of financial position? A company’s assets, liabilities and stockholders’ equity at a set date What type of information is provided in the statement of cash flows? The flow of cash in and out, operating activities, investing activities and financing activities of the company. Briefly explain the purpose of Public Company Accounting Oversight Board (PCAOB).
To oversee auditors of public companies in order to protect the interests of U.S. investors and further the public interest in the preparation of informative, fair, and independent audit reports Under the new rules of the Sarbanes-Oxley Act of 2002, to whom does an auditor report? Securities and Exchange Commission What caused the new rule to be created? A spate of highly publicized business failures, allegations of corporate improprieties and financial statement restatements. Under the new rules of the Sarbanes-Oxley Act of 2002, name eight types of services that are “unlawful” if provided to a publicly held company by its auditor. 1. bookkeeping or other services related to the accounting records or financial statements of the audit client 2. financial information systems design and implementation 3. appraisal or valuation services, fairness opinions, or contribution-in-kind reports 4. actuarial services 5. internal audit outsourcing services 6. management functions or human resources
The Term Paper on Kenneth Lay Enron Company Services
Company Background Enron is the story of the largest bankruptcy in the history of the United States. Through a variety of accounting tricks relating to partnerships, the company was able to inflate its profit and lower its debt. Enron executives earned millions through these partnerships and by selling stock before its demise while employees lost pension plans and retirement funds and stockholders ...
7. broker or dealer, investment adviser, or investmentbanking services 8. legal services and expert services unrelated to the audit What is the mission of SEC? To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation How many commissioners does SEC have and who appoints them? Five presidentially-appointed Commissioners How many divisions and offices does SEC have? Four divisions & nineteen offices Briefly explain the Securities Act of 1933 and the Securities Exchange Act of 1934. The Securities Act of 1933 requires that investors receive financial and other significant information concerning securities being offered for public sale; and prohibit deceit, misrepresentations, and other fraud in the sale of securities. The Securities Exchange Act of 1934 empowers the SEC with broad authority over all aspects of the securities industry.
References
http://www.cisco.com/web/about/ac49/ac20/ac19/ar2008/index.html http://finance.yahoo.com/q?s=CSCO
What is the address of CISCO’s website?
Cisco’s website is www.cisco.com.
When was the 2008 annual shareholders’ meeting?
